priority based budgeting - escribe meetings

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Priority Based Budgeting Presentation of

Organizational Results for Strathcona County

STRATHCONA COUNTY, ALBERTA Jon Johnson & Chris Fabian

April 19, 2016

Achieving Fiscal Health & Wellness 2 Strategic Initiatives

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Fiscal Health Long-term Fiscal Wellness

Why Priority Based Budgeting?

Better depicts and communicates organization’s financial/ budget information to inform decision-making

Avoids traditional “across the board” approach

Ensures organization is “fiscally prepared” for whatever is ahead

Ensures resource allocation (Budget) is aligned with community expectations (Results)

Allows organization to “see” things in a different way and apply a more diagnostic approach

Aligns with current best practices in local government

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BRINGING VISION INTO FOCUS WITH A NEW “LENS”

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Who is Looking through the “New Lens”

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Start with “Why” Fiscal Health and Program Budgeting Assess Financial Reality “WHAT is our “picture of Fiscal Health”?” Identify Programs and Services “WHAT exactly do we do?” Estimate Costs of Programs and Services “HOW much does it cost to do what we do”? Results and Result Definitions Identify and Establish Results “WHY do we exist and what are we in business

to do?” Clarify Results Definitions “HOW will we achieve our Results?”

Putting it All Together – Resource Allocation Evaluate Programs Based on Results “WHAT is of the highest importance?” Allocate Resources Based on Community Priorities “WHAT, HOW and WHY can we “see” differently?”

Program Inventories (and Costs) Developed by the County

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Identifying Programs & Program Costs

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“Inventorying all of a government’s services into a list of programs is the most difficult part of the process, but for many, it is the most

illuminating. By costing out and rethinking the budget in terms of what specific services a government provides, decision-makers gain

valuable information about what they actually do and how much each unit costs to produce.”

315 County-wide Programs - $319,684,211

192 Community Programs - $ 261,934,358

123 Governance Programs - $ 57,749,853

Strathcona County, Alberta Community Results

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Infrastructure (PSG 1)

Economy (PSG 2,5 & 6)

Operational Excellence & Effectiveness (PSG 3 & 4)

Social (PSG 7 & 11)

Safe (PSG 8)

Environment (PSG 9 & 10)

Cultural (PSG 12)

Budget Allocation - Community Results

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Strathcona County, Alberta Governance Results

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Contributes to public engagement and communications where citizens, staff and other stakeholders are informed about community priorities, successes and

challenges Employs effective processes to engage residents, business and industry in

decision-making (PSG 3)

Ensures service excellence, planning, strong fiscal management of programs and organizational capacity

Ensures that all laws, regulations, bylaws and policies are complied with to minimize risk

Informs decision making to support quality of life in the community Attracts, equips and retains the best people in all aspects of municipal service

delivery, promoting leadership and collaboration throughout the organization Strategically plans for long term financial sustainability in support of service

delivery and infrastructure asset management Supports effective operations and informs decision making through innovation,

technology, integrated systems, best practices and evidence based analysis Works cooperatively with neighboring governments and civic organizations

(PSG 4)

Budget Allocation - Governance Results

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Strathcona County, Alberta

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Infrastructure (PSG 1)

Manages, plans and invests in safe and sustainable

municipal transportation infrastructure, planning for integrated mobility options

Ensures the provision of reliable and effective water, sanitary sewer and storm

sewer infrastructure throughout the County

Plans and designs for “smart infrastructure”- sequencing of infrastructure improvements to optimize investment; leveraging technology and infrastructure investments; and encouraging

appropriate density

Provides accessible “social infrastructure” including

libraries, recreation opportunities, and parks that

attract new and sustain existing population

Offers communication/Internet that

is diversified (community, rural, and urban) to satisfy

community needs)

Creates a safe and walkable community for those

traveling upon streets, bikeways, sidewalks, trails

and open spaces

Establishes new and leverages existing

partnerships to enhance and build infrastructure

Strategically manage, invest and plan for sustainable municipal infrastructure

(PSG 1)

Invests in efficient/effective municipal infrastructure that meets the need of a growing

community (PSG 1)


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Economy (PSG 2, 5 & 6)

Promotes a diverse economy that stimulates

innovation and investment Ensures land is zoned to

promote strategic industrial development, and uses

efficient permitting processes to encourage

investment and expansion of industry

Supports workforce education and training and works collaboratively with

local educational institutions to meet future

economic needs

Ensures critical infrastructure (such as

transportation, water and sewer) is available

Invests in our natural capital and promotes

locally-produced food and sustainable practices

Promotes Strathcona County locally, nationally and internationally as a place that is open for

business and investment; attracting large and small

businesses into the community

(PSG 6)

Promotes a growing, diverse value-added agricultural sector

(PSG 5)

Promotes an integrated and diverse energy sector

(PSG 2)


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Operational Excellence and Effectiveness

(PSG 3 & 4)

Works Cooperatively with Neighboring

governments & civic organizations (PSG 4) Supports effective

operations & decision making through

innovation, technology, integrated systems and

best practices

Works cooperatively with urban and rural residents

and businesses to govern as a single

specialized municipality

Is efficient & effective in daily operations

Ensures quality service delivery excellence,

planning & strong fiscal management of

programs & organizational capacity

Strategically plans for long term financial

sustainability in support of service delivery and

infrastructure asset management

Increase public involvement &

communicates with community on issues affecting the County's

future (PSG 3)

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Social (PSG 7 & 11)

Considers individual and community health and well-being, and how we

relate to and care for one another Considers effective

design: how the design of new developments and

redevelopment of existing areas encourage

community interaction and connectedness

Partners with other governments and

community agencies to ease economic and social

disparities

Strengthens the self-sustaining capacity of

individuals, families and communities by fostering

healthy and active lifestyles Ensures fundamental

needs (e.g. affordable housing, safety and

security in our homes, and a sense of belonging) are

met

Builds strong neighbourhoods/communities to support the diverse

needs of our residents (PSG 7)

Promotes a healthy and active community through well-

designed infrastructure that adapts to meet our changing needs and desires, ensuring

facilities and activities are available, accessible and used

by residents (PSG 11)

Provides quality facilities that enables a range of

sport, leisure and recreational programs and opportunities, connecting

the County


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Safe (PSG 8)

Provides a climate of safety for individuals in homes,

neighbourhoods, and public places (PSG 8) Plans, designs and builds a

safely traversable community, including a

efficient & effective transportation system of well-

maintained roads and trails

Creates a resilient and self-sufficient community, where its residents are

increasingly engaged and aware of their own safety

and their neighbors

Leverages technology, design and "intelligence-driven" policing to reduce

crime

Establishes bylaws, policy, and standards that protect people and their property, and that are appropriately and judiciously enforced

Ensures utilities fundamental to public

health (drinking water) and safety (fire suppression)

Effectively responds to emergencies in a timely and

efficient manner

Ensures environmental safety (land, air, water, energy & material use)

Fosters a visibly safe community, where public

safety officials are an engaged part of the

community


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Environment (PSG 9 & 10)

Promotes and models sustainable living, by

protecting and preserving our natural environment

Responsibly protects air, land, water, energy and materials

from the impacts of by growth and development

Manages land, air, water, energy, material use and

biological diversity to ensure a healthy and diverse

ecosystem (PSG 10)

Improves the efficiency of resource usage; minimizing the volume of waste and it's

impact on the community (PSG 9)

Improves the efficiency of resource usage and the effective and efficient management of water

consumption


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Cultural (PSG 12)

Supports cultural activities that generate and sustain economic and social benefits for all, and

contributes to Strathcona County being a welcoming and attractive community in which

to live

Creates a sense of place through cultural attractions, events and resources to help

define our identity and sense of place

Creates and provides opportunities for its residents to

access a variety of cultural attractions and resources

Promotes diversity and inclusivity, cultural heritage,

strong agricultural roots, festivals and events, intangible cultural assets, cultural spaces

and facilities, and the arts community

Contributes to people feeling a strong shared community

identity, heritage, and sense of pride for Strathcona County

(PSG 12)


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Governance Results

Contributes to public engagement and

communications where citizens, staff and other

stakeholders are informed about community priorities, successes and challenges Employs effective processes

to engage residents, business and industry in

decision-making (PSG 3)

Ensures service excellence, planning, strong fiscal

management of programs and organizational capacity

Ensures that all laws, regulations, bylaws and

policies are complied with to minimize risk

Informs decision making to support quality of life in the

community

Attracts, equips and retains the best people in all

aspects of municipal service delivery, promoting

leadership and collaboration throughout the organization

Strategically plans for long term financial sustainability

in support of service delivery and infrastructure

asset management

Supports effective operations and informs

decision making through innovation, technology, integrated systems, best practices and evidence

based analysis

Works cooperatively with neighboring governments

and civic organizations (PSG 4)

Program Scoring : “Value” of Programs based on their influence on

Results and Basic Program Attributes

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Strathcona County, Alberta Basic Program Attributes

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Mandated to Provide the Program Reliance on the County to Provide the

Program Cost Recovery of Program (Community Programs Only)

Portion of the Community/Organization Served by the Program

Basic Program Attributes: Mandated to Provide Program

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• Programs that are mandated by another level of government (i.e. federal or provincial) will receive a higher score for this attribute compared to programs that are mandated solely by the County or have no mandate whatsoever.

• The grading criterion established to score programs, on a 0 to 4 scale is as follows: o 4 = Required by Federal or Provincial legislation, act, code, law or

regulation o 3 = Required by federal or provincial regulatory agency or

Strathcona County bylaw o 2 = Required by Strathcona County policy or to fulfill contractual

agreement o 1 = Recommended to meet best practice, published

standards/guidelines or strategies. o 0 = No requirement or mandate exists

Basic Program Attributes: Mandated to Provide Program

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Basic Program Attributes: Reliance on County to Provide Program

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• Programs for which residents, businesses and visitors can look only to the County to obtain the service will receive a higher score for this attribute compared to programs that may be similarly obtained from another intergovernmental agency or a private business.

• The grading criterion established to score programs, on a 0 to 4 scale is as follows: o 4 = County is the sole provider of the program and there are no other public

or private entities that provide this type of service o 3 = County is currently the sole provider of the program but there are other

public or private entities that could be contracted to provide a similar service o 2 = Program is also offered by another governmental, non-profit or civic

agency o 1 = Program is offered by other private businesses but none are located

within the County limits o 0 = Program is also offered by other private businesses located within the

County limits

Basic Program Attributes: Reliance on County to Provide Program

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Basic Program Attributes: Portion of Community/Organization Served by

Program • Programs that benefit or serve a larger segment of the County’s

residents, businesses and/or visitors will receive a higher score for this attribute compared to programs that benefit or serve only a small segment of these populations.

• The grading criterion established to score programs, on a 0 to 4 scale is as follows: 4 = Program benefits/serves the ENTIRE community/organization

(100%) 3 = Program benefits/serves a SUBSTANTIAL portion of the

community/organization (at least 75%) 2 = Program benefits/serves a SIGNIFICANT portion of the

community/organization (at least 50%) 1 = Program benefits/serves SOME portion of the community/organization

(at least 10%) 0 = Program benefits/serves only a SMALL portion of the

community/organization (less than 10%) 31

Basic Program Attributes: Portion of Community/Organization Served

by Program

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Basic Program Attributes: Cost Recovery of Program (Community) Programs that demonstrate the ability to “pay for themselves” through

user fees, intergovernmental grants or other user-based charges for services will receive a higher score for this attribute compared to programs that generate limited or no funding to cover their cost.

The grading criterion established to score programs, on a 0 to 4 scale is as follows: 4 = Fees generated cover 75% to 100% of the cost to provide the

program 3 = Fees generated cover 50% to 74% of the cost to provide the



program 0 = No fees are generated that cover the cost to provide the program

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Basic Program Attributes: Cost Recovery of Program

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Peer Review Process (Quality Control)

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Defining Quartile Groupings Q 1 Q 2 Q 3 Q 4

Quartile 4: 32 Programs




Strathcona County, AB – Community Programs

Key: Programs are grouped

into Quartiles (not ranked, one versus the other). Quartiles are defined

using standard deviation

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Allocate Resources Based on Prioritization

Strathcona County, AB Community Programs

32 Programs

60 Programs

71 Programs

29 Programs

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“Resource Alignment Diagnostic Tool” Strathcona County, Alberta (Community Programs)

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Thank You !

Jon Johnson, Co-Founder Chris Fabian, Co-Founder

[email protected] [email protected]

www.pbbcenter.org Phone: 720-361-3710

Copyright ©2009 by Chris Fabian and Jon Johnson d/b/a the Center for Priority Based Budgeting, Denver, Colorado.

mailto:[email protected]

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